Political parties have several reasons and means to raise funds from the public, though they seldom take the responsibility to ensure the money raised is not misused or swindled. When the party has the last word, those cheated have no alternatives other than to bear the loss, fearing the organisation’s might and influence, even as the offenders enjoy impunity, and continue holding the party positions. This is the concluding part of a Malayala Manorama series on ‘Missing Party Funds.’
Read Part 1 here: Where do funds raised by CPM, Congress vanish? Parties need no answer
Read Part 2 here: Curious case of vanishing ‘memorial’ funds
Launching chit schemes is one of the many avenues for raising funds for political parties, including the CPM. The party’s local committees to cooperative societies float such schemes citing several reasons: raise funds for constructing a hospital or to finance the wedding of a member of a CPM worker’s family.
Chit schemes involving smaller amounts will go smooth, while those for larger sums often go bust, leaving the investors in a lurch.
Doubts have been raised over the manner by which some schemes have gone bust. The party will get involved before cases are filed, and announce a probe against local leaders who have launched the scheme. The probes are mostly eyewash.
To pacify the investors, the party will also promise to repay them the amount that has been invested. The promise, however, mostly remains unkept. Most of the investors will not take up the case fearing the influence and power and influence of the party.
Why police?
The Peravoor chit fund scam is one such example. The chit fund fraud case, however, is a closed chapter, only for the CPM. The CPM-controlled Peravoor House Building Cooperative Society launched a chit scheme, which went bust in 2021.
An investigation into the case found financial irregularities to the tune of Rs 1.05 crore. Soon after the case had become a controversy, the CPM swung into action, demoted some of its leaders and censured others. It also promised to sell off the society’s assets to repay the investors.
